66026
                                  Paraguay: Public Sector Development Policy Loan

                                                 SUMMARY OF DISCUSSION

                                               Meeting of the Executive Directors

                                                               December 13, 2011

        The Executive Directors approved a Public Sector Development Policy Loan for the
Republic of Paraguay in the amount of US$100 million on the payment terms and conditions set
out in the President’s Memorandum (R2011-0244).

        Executive Directors welcomed the Loan, and its proposed support to public sector
reform. Directors noted the operation’s close integration with government priorities and the
World Bank’s country assistance strategy for Paraguay. They noted that the improvement in the
efficiency of public financial management and the enhanced tax revenue collection would
contribute to poverty reduction and macroeconomic stability in the medium term. In this regard,
Directors stressed the importance of strengthening institutional capacity; fostering governance
and equitable growth; focusing on challenges in delivering social services; and addressing
political risks to implementing prudent fiscal and monetary reforms. Directors also highlighted
the need for robust outcome indicators, close collaboration with authorities, the IMF and other
development partners.

            

            




                                                            
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  This summary is not an approved record.